More success is pouring into Graham’s The Family Dairy, Scotland’s largest independent milk products supplier, with sales up 25% and pre-tax profit up by more than 30%.
Managing director Robert Graham said the last year has not been without challenges for the Bridge of Allan company started by his namesake grandfather 75 years ago.
These included the continuing debate over low farm-gate prices.
Mr Graham said: “As farmers ourselves, we understand the pressures farmers face. Farm-gate prices are always difficult discussions, but our direct relationships help us maintain good relations.”
Graham’s is exploring a new balancing scheme where farmers would produce certain amounts for the liquid and manufacturing markets, to give them more financial security.
The latest meeting with farmers was last night. Mr Graham said: “This is about tying production in farms into business needs, but at 27.5p a litre we are paying more for milk than our rivals in the industry.”
Graham’s sales last year rose from £68 million to £85m, and pre-tax profit went up from just above £1m to £1.32m.
From its origins at Airthrey Kerse Farm with 12 hand-milked cows and horse and cart deliveries, almost half of the households in Scotland now buy Graham’s products.
The business works with more than 90 dairy farmers across Scotland and employs 500 staff, and has grown 20% annually for the last 15 years to now produce an extensive range of milk, butter, cream, cheese, ice-cream, organic and Jersey products.
More than 1.1 million Scottish shoppers buy a Graham’s product at least once a year.
Graham’s products are sold throughout the UK via more than 6,000 customers from independent retailers to hotels and restaurants and the major multiples of Waitrose, Tesco and Asda and Sainsbury’s.
Graham’s is next year introducing additional spreadable butter varieties and a range of luxurious butters, and future plans also include a new £20m purpose-built dairy.
They see that scheme as a boost to the Stirling economy and the long-term future of the dairy industry in Scotland. The dairy would accommodate a new product development research facility and create up to 450 jobs including 50 local apprenticeships.
The project is subject to approval of their 600 home Airthrey Green development proposals currently sitting with Stirling Council.